Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt

Debt

Debt with a contractual term less than 12 months is generally classified as short-term and consisted of the following at December 31 (in thousands):

	2023		2022
Unsecured commercial paper	$	878,935	$	770,468

Debt with a contractual term greater than 12 months is generally classified as long-term and consisted of the following at December 31 (in thousands):

	2023		2022
Secured debt:
Asset-backed Canadian commercial paper conduit facility	$	70,742	$	71,785
Asset-backed U.S. commercial paper conduit facility	233,258		425,794
Asset-backed securitization debt	1,884,629		2,028,155
Unamortized discounts and debt issuance costs	(7,261)		(8,741)
	2,181,368		2,516,993

			2023		2022
Unsecured notes (at par value):
Medium-term notes:
Due in 2023, issued February 2018	3.35%		—		350,000
Due in 2023, issued May 2020(a)	4.94%		—		695,727
Due in 2024, issued November 2019(b)	3.14%		662,238		642,210
Due in 2025, issued June 2020	3.35%		700,000		700,000
Due in 2026, issued April 2023(c)	6.36	%	772,610		—
Due in 2027, issued February 2022	3.05%		500,000		500,000
Due in 2028, issued March 2023	6.50	%	700,000		—
Unamortized discounts and debt issuance costs			(15,710)		(8,464)
			3,319,138		2,879,473
Senior notes:
Due in 2025, issued July 2015	3.50%		450,000		450,000
Due in 2045, issued July 2015	4.625%		300,000		300,000
Unamortized discounts and debt issuance costs			(3,921)		(4,632)
			746,079		745,368
			4,065,217		3,624,841
Long-term debt			6,246,585		6,141,834
Current portion of long-term debt, net			(1,255,999)		(1,684,782)
Long-term debt, net			$	4,990,586	$	4,457,052

(a)€650.0 million par value remeasured to U.S. dollar at December 31, 2022

(b)€600.0 million par value remeasured to U.S. dollar at December 31, 2023 and 2022, respectively

(c)€700.0 million par value remeasured to U.S. dollar at December 31, 2023

Future principal payments of the Company's debt obligations as of December 31, 2023 were as follows (in thousands): 

2024	$	2,135,319
2025	1,853,515
2026	1,389,750
2027	728,936
2028	744,892
Thereafter	300,000
Future principal payments	$	7,152,412
Unamortized discounts and debt issuances costs	(26,892)
	$	7,125,520

Unsecured Commercial Paper – Commercial paper maturities may range up to 365 days from the issuance date. The weighted-average interest rate of outstanding commercial paper balances was 6.18% and 5.28% at December 31, 2023 and 2022, respectively.

Credit Facilities – The Company has a $710.0 million five-year credit facility that matures in April 2027 and a $710.0 million five-year credit facility that matures in April 2025. The five-year credit facilities (together, the Global Credit Facilities) bear interest at variable rates, which may be adjusted upward or downward depending on certain criteria, such as credit ratings. The Global Credit Facilities also require the Company to pay a fee based on the average daily unused portion of the aggregate commitments. The Global Credit Facilities are committed facilities primarily used to support the Company's unsecured commercial paper program.

Unsecured Notes – The fixed-rate U.S. dollar-denominated unsecured notes provide for semi-annual interest payments and the fixed-rate foreign currency-dominated unsecured notes provide for annual interest payments. Principal on the unsecured notes is due at maturity.

During February and May of 2023, $350.0 million of 3.35% and €650.0 million of 4.94% medium-term notes matured, respectively, and the principal and accrued interest were paid in full. During February and June of 2022, $550.0 million of 4.05% and $400.0 million of 2.55% medium-term notes matured, respectively, and the principal and accrued interest were paid in full.

Operating and Financial Covenants – Harley-Davidson Financial Services Inc. and the Company are subject to various operating and financial covenants related to the credit facilities and various operating covenants under the medium-term and senior notes and the U.S. and Canadian asset-backed commercial paper conduit facilities. The more significant covenants are described below.

The operating covenants limit the Company’s and Harley-Davidson Financial Services Inc.'s ability to:

•Assume or incur certain liens;

•Participate in certain mergers or consolidations; and

•Purchase or hold margin stock.

Under the current financial covenants of the Global Credit Facilities, the ratio of Harley-Davidson Financial Services Inc.’s consolidated debt, excluding secured debt, to Harley-Davidson Financial Services' consolidated allowance for credit losses on finance receivables plus Harley-Davidson Financial Services Inc’s consolidated shareholders' equity, excluding AOCL, cannot exceed 10.0 to 1.0 as of the end of any fiscal quarter. In addition, the ratio of the Company's consolidated debt to the Company's consolidated debt and consolidated shareholders’ equity (where the Company's consolidated debt in each case excludes that of Harley-Davidson Financial Services Inc. and its subsidiaries, and the Company's consolidated shareholders’ equity excludes AOCL), cannot exceed 0.7 to 1.0 as of the end of any fiscal quarter. No financial covenants are required under the medium-term or senior notes or the U.S. or Canadian asset-backed commercial paper conduit facilities.

At December 31, 2023 and 2022, Harley-Davidson Financial Services, Inc. and the Company remained in compliance with all of the then existing covenants.